Deflector South West ore drive face. Source: Silver Lake Resources
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  • Silver Lake Resources (SLR) withdraws its FY22 gold sales guidance due to ‘severe disruptions’ caused by COVID-19
  • The billion-dollar materials stock experienced supply chain issues and labour shortages which led it to withdraw its guidance despite being on track to meet it
  • In total, Silver Lake produced over 53,800 ounces of gold from the WA-based Deflector and Mt Monger projects as well as 262 tonnes of copper from Deflector
  • Year to date production came to 182,778 ounces gold and 756 tonnes copper with sales of 179,990 ounces of gold and 697 tonnes of copper
  • SLR shares are trading eight per cent lower at $1.84

Silver Lake Resources (SLR) said operations during the March 2022 quarter were negatively impacted by COVID-19.

The billion-dollar stock experienced a combination of supply chain issues, related definitions and treatment protocols which ‘adversely impacted’ the availability of skilled workers, leading to disruptions to operations, higher costs and increased operational risks.

In terms of production, Silver Lake produced 53,822 ounces of gold from its Deflector and Mt Monger projects which is a decrease from the 64,009 ounces produced in the December quarter.

Additionally, the recently added Sugar Zone mine (through the Harte Gold acquisition) produced 9992 ounces of gold and sold 12,758 ounces of gold (4926 ounces of which are attributable to Silver Lake).

The Deflector project also produced 262 tonnes of copper marking an increase from 243 tonnes in the prior quarter.

Located in Western Australia, the Deflector Gold and Copper Project contributed most of the gold production with 30,581 ounces produced.

The company sold 29,256 ounces and 246 tonnes of copper from the Deflector mine at an all-in sustaining cost (AISC) of $1465 per ounce which is higher than the prior quarter.

Over at the Mt Monger project, also in WA, 23,241 ounces of gold was produced with sales of 26,134 ounces. Like the Deflector project, AISC were higher than the December quarter and totalled $2270 per ounce.

Year to date production stood at 182,778 ounces of gold and 756 tonnes of copper (186,326 ounces gold equivalent) with sales of 179,990 ounces of gold and 697 tonnes of copper at an average sales price of $2441 per ounce and an AISC of $1673 per ounce.

While the company said the year-to-date performance positions it to meet its FY22 group gold sales guidance, COVID-19-related labour shortages, ongoing restrictions and supply chain constraints have caused it to withdraw its FY22 sales guidance. Silver Lake said it can’t confidently predict the June quarter’s operating performance.

Cash and bullion as of March 31 totalled $287.3 million which is higher than the $273.8 million it started with.

SLR shares were down eight per cent to trade at $1.84 at 1:33 pm AEST.

SLR by the numbers
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